Random Notes on the Market

Here are a few random notes about today’s market. Some commentators are acting like an earnings decline for Q3 is a done deal. That may not be the case. So far, results are trending above expectations.

According to the latest numbers I have from S&P, earnings for this year’s Q3 are projected to come in 1.1% below the Q3 from one year ago. The dreaded earnings slowdown may not last very long. Analysts see earnings ramping up to 13.4% growth for Q4. As with Q3, earnings estimates for Q4 had been coming down but have recently stabilized around $27.

I also noticed that Johnson & Johnson ($JNJ) broke $70 per share this morning. The stock hasn’t been over $70 in more than four years.

The Commerce Department reported today that housing starts rose by 15% last month which is the fastest pace in four years. This is hopeful for the emerging trend of a housing recovery lending support to consumers. In fact, this could be the best holiday season in a long time. I think it’s interesting that Mattel ($MAT) is up close to 20% over the last three months. Hasbro ($HAS) has also done very well.

Posted by on October 17th, 2012 at 11:12 am


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